February 15, 2018 / 3:34 AM / 6 months ago

Morning News Call - India, February 15

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    FACTORS TO WATCH
    8:30 am: Maharashtra Industries Minister Subhash Desai at Sintercom India
listing ceremony in Mumbai. 
    12:00 pm: Government to release January wholesale price inflation data in
New Delhi.
    1:00 pm: Commerce Minister Suresh Prabhu and NITI Aayog CEO Amitabh Kant at
Yes Bank’s annual economic conclave in New Delhi.
    
    LIVECHAT-BONDS UPDATE
    Reuters interest rate reporter Dhara Ranasinghe delves into governmen bond
markets at 1900 IST. To join the conversation, click on the link: here
    
    
    INDIA TOP NEWS
    •PNB detects $1.77 billion fraud in latest India bank case
    Punjab National Bank has detected fraudulent transactions worth $1.77
billion at a single Mumbai branch in a case that could affect more banks and
raise fresh questions about lending procedures at Indian banks mired in soured
debt.
    •Sun Pharma quarterly profit plunges on weak U.S. sales
    India's largest drugmaker Sun Pharmaceutical Industries reported a 75
percent plunge in third-quarter net profit on Wednesday as pricing pressures in
the United States, its biggest market, hit sales.
    •A top Indian cotton-growing state has told two local companies that seeds
they sold to farmers may have contained traces of an unapproved GM strain from
Monsanto, according to government notices seen by Reuters that warn of action
against the firms.
    •Idea Cellular launches up to $546 million share sale
    Wireless carrier Idea Cellular on Wednesday launched a share sale to
institutional investors to raise up to 35 billion rupees ahead of its merger
with Vodafone's Indian business.
    •Nestle India Q4 profit up 60 percent
    Nestle India, maker of Maggi instant noodles and Kit-Kat chocolates, on
Wednesday posted a 59.6 percent rise in fourth-quarter net profit, boosted by
higher domestic sales.
    •Tata Power Q3 profit drops, beats estimate
    India's Tata Power reported a marginal drop in quarterly profit, but beats
analysts' forecasts.
    Indian state warns local firms over spread of unauthorised Monsanto GM
cotton
    •Bharti Airtel's holding company for Africa explores IPO
    India's biggest mobile carrier Bharti Airtel said on Wednesday its holding
company for Africa operations is looking at a potential initial public offering.

    •Jet Airways Q3 profit nearly halves as fuel costs soar
    Jet Airways (India), the country's second-largest airline, on Wednesday
reported a 46 percent drop in third-quarter profit, hurt by higher fuel
expenses.XX
    
    
    GLOBAL TOP NEWS
    •Japan's Dec machinery orders fall at fastest in 3 yrs, cast doubt on capex
    Japan's core machinery orders tumbled in December at the fastest pace in
more than three years and companies expect orders to rise only marginally in
January-March, raising concerns that recent gains in capital expenditure may
taper off.
    •Ex-student kills 17 in shooting spree at Florida high school
    A 19-year-old gunman returned to a Florida high school where he had once
been expelled for disciplinary reasons and opened fire with an assault-style
rifle on Wednesday, killing 17 people and injuring more than a dozen others
before he was arrested, authorities said.
    •Zuma quits, ending scandal-plagued term as South African president
Jacob Zuma resigned as President of South Africa on Wednesday, reluctantly
heeding orders by the ruling African National Congress to bring an end to his
nine scandal-plagued years in power.
    
    
    LOCAL MARKETS OUTLOOK
    (As reported by NewsRise)
    • The SGX Nifty Futures were trading at 10,541.00, trading up 0.75 percent
from its previous close.
    • The Indian rupee will likely open steady to higher against the dollar,
tracking gains in most Asian peers after greenback fell overnight despite upbeat
U.S. inflation data, which prompted expectations the Fed may hike rates at a
faster pace going ahead.
    • Indian sovereign bonds are likely to edge lower in early session tracking
a jump in U.S. Treasury yields. The yield on the 7.17 percent bond maturing in
2028 is likely to trade in a 7.48 percent-7.55 percent band today.
    
    
    GLOBAL MARKETS
    • Wall Street surged on Wednesday as investors shrugged off
stronger-than-expected inflation data and snapped up shares of Facebook,
Amazon.com and Apple.
    • Asian stocks gained after Wall Street brushed aside strong U.S. inflation
data and surged, a counterintuitive move that also saw the dollar pinned at
two-week lows even as Treasury yields jumped in anticipation of a quicker pace
of U.S. interest rate hikes.
    • The dollar extended its losses against the yen and hit a fresh 15-month
low, with market participants bracing for further near-term weakness in the U.S.
currency.
    • U.S. Treasury yields on most maturities rose on Wednesday, with those on
benchmark 10-year notes hitting a four-year high, boosted by data showing
consumer prices in the world's largest economy gained more than expected last
month, with underlying inflation posting its largest monthly increase in a year.

    • Oil prices extended gains from the previous session, pushed up by a weak
dollar and by comments from Saudi Arabia that it would rather see an
undersupplied market than end a deal with OPEC and Russia to withhold
production.
    • Gold prices held steady, near the 2-1/2-week high hit in the previous
session, supported by a weaker dollar and as investors bet on higher U.S.
inflation after a faster-than-expected rise in consumer prices last month.

       
    
                   CLOSE        FII INVESTMENTS  EQUITIES      DEBT
 PNDF spot         64.14/64.17  February 14      -$113.74 mln  -$246.68 mln
 10-yr bond yield  7.59 pct     Month-to-date    -$908.27 mln  $402.29 mln
                                Year-to-date     $1.13 bln     $1.87 bln
 
   
    For additional data:
    India govt bond market volumes                 
    Stock market reports                
    Non-deliverable forwards data              
    Corporate debt stories               [IN CORPD]
    Local market closing/intraday levels [IN SNAPSHOT]
    Monthly inflows                      [INFLOWS RTRS TABLE IN]
 


    ($1 = 64.0950 Indian rupees)
    
    
    

 (Compiled by Yoganand KN in Bengaluru)
  
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